American Multi-State Cannabis Operators Imploding - Down 46% YTD; Down 75% From 2021 High

The general market weakness and the continuing disappointment in the postponement of the introduction of the Cannabis Administration & Opportunity Act (CAOA) from the end of April until sometime before the end of July has the largest American multi-state operators (MSOs) as tracked in the American Pure-play LP Pot Stock Index imploding. Here are the details.


The munKNEE Pure-Play American MSO Pot Stock Index

The American MSO Pot Stock Index consists of the 13 largest pure-play, vertically integrated multi-state operators whose stocks trade for at least US$1/share, have a market cap of at least US$200M (Goodness Growth is less but will soon be owned by, and incorporated into, Verano), and trade on one or more of the Canadian and/or American stock exchanges.

Below is how the 13 constituents performed from the end of March until the U.S. markets closed yesterday (Thursday), YTD (as of yesterday), and from their market highs in 2021, in descending order:

  1. Curaleaf (CURLF): -18.1% since the end of March; (-38.3% YTD); -69.2% from its 2021 peak 
    • Chance of Financial Distress in next 2 years: 43%
    • Analyst Consensus: 22 stock analysts currently rate CURLF as a BUY
    • Recent Analysis/Commentary: Go here
  2. Ascend Wellness (AAWH): -24.6%; (-52.4% YTD); -72.2% from its 2021 peak
    • Chance of Financial Distress in next 2 years: 74%
    • Analyst Consensus: 5 stock analysts currently rate AAWH as a BUY
    • Recent Article Analyses/Commentaries: Go here
  3. Acreage (ACRDF/ACRHF): -25.4%; (-20.7% YTD); -81.9% from its 2021 peak
    • Chance of Financial Distress in next 2 years: +73%
    • Analyst Consensus: None following Acreage
    • Recent Analysis/Commentary: Go here
  4. Verano (VRNOF): -26.1%; (-41.6% YTD); -71.0% from its 2021 peak
    • Chance of Financial Distress in next 2 years: 43%
    • Analyst Consensus: None following VRNOF
    • Recent Analysis/Commentary: Go here
  5. Goodness Growth (GDNSF): -27.4%; (-11.7% YTD); -59.9% from its 2021 peak
    • Chance of Financial Distress in next 2 years: +70%
    • Analyst Consensus: None following GDNSF
  6. Green Thumb (GTBIF): -33.4%; (-43.9% YTD); -67.7% from its 2021 peak 
    • Chance of Financial Distress in next 2 years: less than 10%
    • Analyst Consensus: 23 stock analysts currently rate GTBIF as a BUY
    • Recent Analysis/Commentary: Go here
  7. Trulieve (TCNNF): -33.8%; (-46.6% YTD); -92.9% from its 2021 peak
    • Chance of Financial Distress in next 2 years: 39%
    • Analyst Consensus: 24 stock analysts currently rate TCNNF as a BUY
    • Recent Analysis/Commentary: Go here
  8. Jushi (JUSHF): -34.8%; (-42.5% YTD); -78.3% from its 2021 peak
    • Chance of Financial Distress in next 2 years: +70%
    • Analyst Consensus: None following JUSHI
    • Latest Analyses/Commentaries: Go here
  9. Cresco (CRLBF): -34.8%; (-41.2% YTD); -76.8% from its 2021 peak
    • Chance of Financial Distress in next 2 years: +70%
    • Analyst Consensus: None following CRLBF
    • Recent Analysis/Commentary: Go here
  10. TerrAscend (TRSSF): -35.0%; (-38.7% YTD); -76.2% from its 2021 peak
    • Chance of Financial Distress in next 2 years: +63%
    • Analyst Consensus: None following TRSSF
    • Recent Analyses/Commentaries: Go here
  11. Columbia Care (CCHWF): -37.5%; (-34.3% YTD); -75.4% from its 2021 peak
    • Chance of Financial Distress in next 2 years: +67%
    • Analyst Consensus: None following CCHWF
  12. Planet 13 (PLNHF): -40.3%; (-49.0% YTD); -81.6% from its 2021 peak
    • Chance of Financial Distress in next 2 years: 32%
    • Analyst Consensus: 10 stock analysts currently rate PLNHF as a BUY
    • Recent Analysis/Commentary: Go here
  13. Ayr Wellness (AYRWF): -64.0%; (-68.6% YTD); -86.9% from its 2021 peak
    • Chance of Financial Distress in next 2 years: +74%
    • Analyst Consensus: 3 stock analysts currently rate AYRWF as a BUY
    • Recent Analysis/Commentary: Go here

The American Pure-play MSO Pot Stock Index is DOWN 36.1% since the end of March (as of yesterday) and is now DOWN 45.9% YTD (as of yesterday) and DOWN 75.0% (as of yesterday) from its high in 2021.

For the record:

  • The Canadian Pure-play LP Pot Stock Index is DOWN 33.9% since the end of March (as of yesterday) and is now DOWN 38.6% YTD (as of yesterday) and is now DOWN 89.5% (as of yesterday) from its high in 2021.
  • Collectively, the Canadian LP and American MSO indices are DOWN 35.6% since the end of March (as of yesterday) and are now DOWN 44.5% YTD (as of yesterday) and -80.5% (as of yesterday) from their highs in 2021.

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Rob Contano 2 years ago Member's comment

I’ll take massively depressed sp with businesses printing 57% EBIT to Rev…. and significant Net Profits. 

Cannabis Stock Buyer 2 years ago Member's comment

Not $MRMD.  Best cannabis $MSO play out there full stop.